Over the past three months, Bitcoin (BTC) may not have ushered in the much-anticipated “raging bull market” for retail investors. But smaller cryptocurrencies have taken center stage with a notable surge, some witnessing up to a tenfold increase. There seems to be a shift in the long-term bear market that has been affecting the altcoin world for nearly two years. On Binance, small market cap currencies like TRB, GAS, and BLZ stole the spotlight. Here are the details…
Altcoin was split between two exchanges
TRB, currently the dominant asset held by Binance investors, has surged an impressive 20x in just two months. Coincidentally, ARK, which has tripled since late October, reflects many characteristics of the early TRB surge. On-chain data analysis reveals significant whale activity, increasing speculation about the future trajectory of this cryptocurrency. Experts claim that ARK is the new target of the whales, who previously had a sales density in TRB.
At the end of October 2023, CoinMarketCap (CMC) data showed that UPBIT had a significant presence of ARK in its hot and cold wallets, accounting for more than 50% of the total ARK issuance. In comparison, Binance retained about 20%. However, Binance’s share rose to the detriment of UPBIT after the significant price increase on October 29.
Important ARK releases drew attention
During this shift, Binance witnessed strong buy orders with over 400 million ARK spot transactions accounting for 200% of total circulation in just three days. Several whale accounts became the driving force behind the market, purchasing over 50 million net ARK during this period. The price difference between UPBIT and Binance presented a lucrative opportunity for large investors. The data revealed that certain wallet addresses, such as AMMwxQZGYLEGwSQyy3Q6nmViTD36WCnTQ4 and ANapGk9mbnMZtVhyiNrKpWL6ZcUZqg1xyT, frequently made large transfers between the two exchanges and captured a significant portion of the arbitrage profits.
Following the slowdown in whale buying activity, Binance experienced significant ARK outflows. ARKSCAN data shows that just five whale addresses attracted over 40 million ARKs worth over $60 million, accounting for 22.5% of the total supply. These addresses are currently only accessible and point to clear money hoarding behavior.
Voting rates skyrocketed
Moreover, ARK’s Delegated Proof-of-Stake (DPOS) mechanism includes a voting system. As the market rose, the number of pledged votes across the network skyrocketed. Between November 20-25 alone, the number of votes increased from under 40 million to over 61 million, and more than 20 million ARKs were added to the vote, a 50% increase. The network’s voting rate reached 36%, further reducing ARK’s actual circulation.
Various indicators show that Binance whales started this ARK market surge. He claims to have arranged for UPBIT’s existing coins to be transferred to Binance and then withdrawn to cold wallets. The recent rapid increase in voting rate has effectively locked up liquidity. This sequence of events reflects Binance’s heavy buying strategy during the first wave of TRB’s rise.
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